There seems to be a lot of misinformation and incorrect assumptions regarding the terms & conditions of Heritage Auctions, so I’m pleased to take this opportunity clarify.
Let’s begin by noting the definition of shill bidding. Shill bidding is the practice of placing bids on auction lots to intentionally raise the bid price with no interest in actually purchasing the lot.
Next, here is the term that is being referenced in our terms & conditions, term 21:
21. The Auctioneer, its affiliates, or their employees consign items to be sold in the Auction, and may bid on those lots or any other lots. Auctioneer or affiliates expressly reserve the right to modify any such bids at any time prior to the hammer based upon data made known to the Auctioneer or its affiliates. The Auctioneer may extend advances, guarantees, or loans to certain consignors.
Here is what this term means:
(1) Heritage does sometimes consign items that they own to the auctions and some of those items have reserves. The reserves are published online, and reserves are a form of bid placed by the consignor.
(2) Heritage will place bids at a wholesale level on lots owned by other consignors if we think that by buying it at that price we can make a profit in the future. These bids are placed strictly as potential buyers, and are without regard to any existing bids on the lot. In addition, bids placed by the house are entered a week before the close of our sports catalog auctions, well before the bulk of serious bidding begins. The part about modifying bids has to do with outside data regarding an item's value, such as a third party authenticator changing an opinion about a clubhouse signature on a team signed baseball.
(3) Many Heritage employees, including myself, are also collectors, and we will place bids on items that we want for our own collections. When I win something, I pay the full hammer price, the full buyer's premium, and Texas sales tax.
Heritage and Heritage employees do not shill bid. It is an illegal practice, no matter the state in which the business is based, and any employee that engages in the practice would be reprimanded and very likely terminated.
Our auctions do not have hidden reserves. All reserves are noted and published online 7 days prior to the auction close for catalog auctions (3 days for internet only auctions), and any item that does not meet reserve is listed as ‘Not Sold’ in our post auction results.
Last, while I can understand some skepticism from collectors given the previous scandals related to some other sports auction firms, Heritage has been conducting collectibles auctions for over 40 years and is the largest auction firm founded in the United States. The fact that our policies are disclosed publicly should leave no doubt that we have nothing to hide, and that our practices are both legal and well within the bounds of hobby ethics.
I hope that this post clears up any confusion or concerns about the terms & conditions of our auctions. This will serve as my only post on the matter so if anyone has any additional questions, then please feel free to contact me directly.
Regards,
Chris
Chris Ivy | Director of Sports Collectibles
HERITAGE AUCTIONS
3500 Maple Avenue | Dallas, TX 75219
877-HERITAGE | (877) 437-4824
Direct: (214) 409-1319 | Fax: (214) 409-2319
Chris@HA.com |
www.HA.com
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